Bigger trade deficit driven by import growth
Media release
1 April 2010
Australia recorded a trade deficit of $1.9 billion in February 2010, according to figures released today by the Australian Bureau of Statistics.
This is an increase of $804 million on the revised January trade deficit of $1.1 billion.
The increased deficit was driven by a $500 million increase or 2 per cent rise in imports and a 1 per cent drop in exports.
The growth in imports was a result of strong growth in machinery and industrial equipment which rose $255 million, or 23 per cent, as well as a $263 million rise in imports of consumption goods, a rise of 5 per cent.
“This is further evidence of growing confidence in our resources sector as Australian companies have made the decision to invest again,” Trade Minister Simon Crean said.
“Like Australian businesses, Australian consumers are showing signs of growing confidence in the future,” he said.
Exports fell by 1 per cent to $19.9 billion in February 2010.
“This fall in exports was largely due to a 12 per cent decrease in coal exports which was expected after the impact of the devastating floods in Queensland on the sector,” Mr Crean said.
“In a positive sign for the automotive sector, which is largely based in Victoria and South Australia, exports of transport equipment jumped 14.6 per cent to $384 million to reach its highest levels since January 2009,” Mr Crean said.
Merchandise exports to China rose 4 per cent to $3.2 billion in February.
Media inquiries
- Trade Minister's Office: (02) 6277 7420
- Departmental Media Liaison: (02) 6261 1555